New Week, New Challenges

Late again. I wonder if it’d be easier to do this daily!

The brief phase of political excitement seems to have passed, as Takaichi’s government is mostly doing normal things like policy making and debates. Some of which is good news for most folks: we could see some subsidies for essentials, vouchers for rice, and changes to the costs of high school education. Prices of goods remain high, though, so the positives are more of a dampening effect on the pressure on our wallets.

“At least the domestic stock market is doing well,” some are probably thinking. Japan’s homegrown technology and AI companies are marking better returns than US counterparts, and Tokyo took the top spot in city GDP, so there’s reason to be optimistic for folks who have excess income to put into investments. But still, it’s hard.

Consumer and family economics

To combat high living costs, the government is preparing an economic stimulus package expected to exceed ¥17 trillion, which includes new measures like support for food purchases, an expanded subsidy for winter electricity and gas bills, and rice vouchers, while also raising the gasoline subsidy ahead of a planned tax removal. This push for economic relief comes as the nation faces rising producer prices—particularly for agricultural goods—and a record high in retail rice prices, even as Tokyo was ranked the world’s richest city by GDP.

• ​Gov’t to include rice vouchers in upcoming economic stimulus​
• ​Tokyo ranked world’s richest city by GDP, with Osaka-Kobe also rated highly​
• ​Gov’t raises gasoline subsidy to reduce prices ahead of tax removal​
• ​Producer prices rose 2.7% on year in October, with agricultural goods up 31.4%​
• ​Japan retail rice price hits record high since gov’t release eased​
• ​Japan’s finance minister says stimulus package to exceed ¥17 trillion, Nikkei reports​
• ​Japan labor productivity up 0.2% in FY 2024​

National economics

Japan’s economy shows signs of strengthening as the current account surplus hit a record high, U.S. investors flock to the surging Nikkei, and the Bank of Japan signals an inclination toward rate hikes. The government is also moving to fund high school reform, which would improve the public school experience to equalize the playing field in comparison to private schools.

• ​Goldman sees U.S. investors flocking to Japan as Nikkei surges​
• ​Bank of Japan signals it’s inclined to increase rates, with the usual caveats​
• ​Japan’s April-September current account surplus hits record high​
• ​ふるさと納税1.3兆円の14%集める北海道、財源確保へ競う自治体 [Hokkaido, collecting 14% of 1.3 trillion yen in Furusato Nozei, local governments compete to secure finances]​
• ​Japan to set up ¥300 billion funds for high school reform​

Current events and society

Among other challenges, we see concerns over the talent drain from local areas as international students move to urban centers, while some profitable firms cutting jobs to appease activist investors seeking stronger returns. The government announced it will subsidize the demolition of abandoned inns, and the country hosts a major international event with the opening of the Tokyo Deaflympics.

• ​Japan to subsidize demolition of abandoned inns​
• ​Profitable firms cut jobs as activist investors and TSE seek stronger returns​
• ​A century of Deaf sport finds its moment in Tokyo​
• ​三重交通、外国人採用に力 留学生は都市圏へ「人材流出」に危機感 [Mie Kotsu Focuses on Foreign Recruitment; Feels Crisis Over ‘Talent Drain’ as International Students Move to Urban Centers]​

Politics

In the political arena, the ruling LDP and JIP are set to advance talks over constitutional revision, while the LDP faces difficulty in agreeing on a reduction of Lower House seats in the current Diet session. Prime Minister Takaichi has a busy schedule ahead, preparing for her first full Diet debate with opposition leaders on November 26, and also pushing back against a corporate focus on shareholders.

• ​LDP sees difficulty in agreeing on Lower House seat reduction in current Diet session​
• ​Takaichi pushes back against companies’ focus on shareholders​
• ​LDP and JIP to advance talks over constitutional revision - The Japan Times​
• ​Takaichi’s first Diet debate with opposition leaders set for Nov. 26 - The Japan Times​

Technology

Japanese AI startup Sakana AI is targeting the defense and banking markets after a major funding round, and a new development from PLAYWORKS called the “koko tape” aims to improve accessibility for the visually impaired with the invention of a peel-and-stick textured tape that can be used in place of traditional Braille blocks.

• ​点字ブロックなくても気軽に外出を 貼ってはがせる凸凹テープ開発 [Go Out Easily Without Braille Blocks: Development of Peal-and-Stick Textured Tape]​
• ​Sakana AI targets defense and banking markets after big funding round​

Safety

Japan is grappling with two persistent natural threats: a major M6.7 earthquake off the northern coast that prompted a tsunami advisory, and a historical bear problem that necessitates safety measures amid a surge in sightings and another serious attack on a hunter in Gunma. We also see concerns about the increase in “wooden apartments” in city centers around their safety and long-term value.

• ​Japan’s bears have been on their killing spree for more than 100 years​
• ​M6.7 quake strikes off coast of northern Japan; tsunami advisory lifted after 3 hours​
• ​Tsunami threat passes following magnitude 6.9 quake off Iwate​
• ​Businesses in Japan tighten bear safety measures as sightings surge​
• ​安全性はどうなの?都心で急増する「木造マンション」の真価と未来 [What About Safety? The True Value and Future of Rapidly Increasing ‘Wooden Apartments’ in City Centers]​
• ​Fourth avian flu outbreak this season confirmed in Niigata​

Closing Out

Got any anecdotes or stories you'd like to share or questions you'd like to ask? Send them in! Whether it's part of the news or just a story from your life, I'd love to hear from you.

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